Budget date set as Reeves announces £22bn ‘cover-up’ – MNM

Rachel Reeves described in parliament today that the legacy left to her by the previous government was “unforgivable” and said it had given the public “false hope” by making unfunded promises.

She said that as a result she would have to make “difficult decisions” to stabilize the economy in her upcoming budget.

There is growing speculation that the Chancellor plans to increase capital gains tax in line with income tax to boost revenues.

Some have suggested she could also target the estate tax to raise more money.

In her speech today, Reeves said she would ask government departments to find savings and introduce a multi-year spending review as part of this fall’s budget.

She announced she would take legislative action to ensure there could never be a repeat of Liz Truss’s disastrous mini-budget and to prevent ministers covering up the true state of the public finances, as she claimed the Tories have done.

In an unexpected move, she also said the winter fuel payment for pensioners would be limited to those with pension credit.

And while the government is still committed to ending its shareholding in NatWest by 2025/2026, the chancellor said she would no longer make a discounted share offer to private investors, as the Conservatives had planned.

Reeves said: “The government published its plans for day-to-day spending in the spring budget in March.

“But when I arrived at the Ministry of Finance on the very first day, I was warned by officials that this was not the amount the previous government expected to spend this year.

“It wasn’t even close.”

She added: “It means, Mr Speaker, that we have inherited a projected £22 billion overspend, or a £22 billion hole in the public finances, now, and not in the future.

“It was covered up by the opposing party. If left unchecked, this would mean a 25% increase in the budget deficit this year.”